$100K Typo

[Joe M.]

I found a listing with a price that is obviously a typo. It's listed $100K below where it should be.

Not the real numbers, but let's say it is listed at $32,500 but really the house should be listed around $132,500.

I'm just curious how you would approach a situation like this. It is an REO property.

[Account Closed]

this happened to me as well before....i offered full price, quick close in cash, no contiengcies, etc. in my letter to the agent, i highlighted all of this, and said it was a FULL PRICE offer, so he/she wouldn't think i lowballed them if they were still thinking of the other price...it didn't work though....i received an email that it was listed at the wrong price...hope it works better for you! also, curious to see how others would have handled this

[Jon Holdman]

An error in the listing isn't going to affect your purchase price. They have no legal obligation to accept you offer just because its at or above the listing price.

Are you sure its really wrong, though? Have you see the property? I've seen REOs that had plastic sheeting for walls. Perhaps its a complete wreck.

[Joe M.]

Well that was fast. The typo has been corrected.

[Account Closed]

So much for fat fingers (flash crash reference).

[Steve Babiak]

I had the same thing happen, and did EXACTLY as BryanA - with the same results. The price was quickly "corrected".

Now, I've seen this happen more than once, and IMO it is sometimes done DELIBERATELY by the listing agent to draw attention to a property that has been languishing on the market. Of course, it is hard for me to prove this, but I'm going to hold to my opinion :wink:

[James Vermillion]

It may be sometimes deliberate but more often I believe it is a mistake...everyone fat fingers every once in a while!

[Joel Owens]

When inputting listing on MLS most say information deemed reliable but NOT guaranteed.

So no you will not get these properties based on mistakes like that.

We can all dream right! :)

[Steve Babiak]

Sorry, but when my fat fingers strike, two keys get hit. The cases we're talking about in this thread are ones where those fat fingers missed a key. I've got news for you, it's HARD to MISS a key with fat fingers :D

[Account Closed]

jon, are you saying you wouldn't try to get a spectacular deal if there was an error? let's say there was a property that prob should have been listed at 150k, and you were going to bid 100k...it's listed on the mls for 50k (prob bc of human error)...you would still bid the 100k? not arguing, just clarifying??

[Jake Kucheck]

Wanted to chime in here in saying that Jon is correct, the listing agent making a typo in the listing price will not get you a great deal, HOWEVER, something to look for is agents that don't describe the property particularly well or clearly. This is an indication they didn't do a thorough job taking down the property information initially, and might overstate its amenities. If the property is listed as having a "Central AC" but it doesn't, guess who is on the hook for providing a "Central AC" during escrow. Well, technically the seller, but since it was the listing agent's fault, it will be the listing agent that pays for it.

This is a nice little way to look for freebies on nicer properties. Coming from an agent who had to buy a Central AC in his first year as an agent.

[Mike G.]

Ooh, I want to buy a rehab property where the agent has to put in free AC! Do you sell any properties in the San Fernando Valley, Jake? :)

[Jon Holdman]

Not saying I wouldn't try, but I am saying its not going to work. At best the offer might get submitted if the typo has happened upstream of the agent. But its going to get caught and kicked out somewhere before the deal closes. I understand that at Wal-mart you might get a deal on a mispriced item, but that's not going to get you $100K on a piece of real estate.

[Steve Babiak]

Here's the rub.

I agree with Jon's earlier post that REO properties can be in such sad shape that these sorts of low prices just MIGHT be possible.

So, you go look at the place, and realize that it's in much better condition than the price would indicate.

Think the Listing Agent cared that you just wasted your time? Because your "full price" offer isn't what they had in mind.

And like I said, I've seen this more than once (the first time I jumped right on it because it seemed like a killer deal, but since that experience I now know it's just a game being played by some LA).

[Joel Owens]

Hi Jake,

In my area it doesn't work that way.Our MLS states "information deemed reliable bit NOT guaranteed"

That means the "buyers right to their own inquiry".Upon discovery the buyer can certainly bring up any inconsistencies and ask for a credit but the seller nor the listing broker or agent is obligated to do anything.

Now where some brokers or agents mess up is filling out the sellers disclosure for them when listing a property.YOU ALWAYS have the seller fill the disclosure out and sign.

In cases of banks and estate sales there usually is no disclosure so you simply disclose that fact.

I know California operates differently than some states.